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I believe it will hurt IB but will not destroy them. Not everyone knows who Mike and Kier are, much less follow the story. Topics like these are really childish at best and hold absolutely no weight. But I agree that IB's move onto the law suit is basically just to put a hold on the xF sales, which I think xF shouldn't budge for. This case (unless it's proven that portions of the code were merely copied) will not stand in courts.
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